| Sample Children's Book Production Quote 1 Financial Analysis (CDN$)
Children's Book 1: softcover, full color, 24 pages
Let's say that you are interested in producing a children's book with specifications exactly like the one in our example. Based on the analysis below, we can make the following conclusions:
- For sales of 1,500 books, your total potential profit is $12,012.
- For sales of 1,000 books, your total potential profit is $5,628.
Quantity |
|
1,000 |
1,500 |
|
% direct to consumer |
65% |
650 |
975 |
|
% to retail stores |
25% |
250 |
375 |
|
% to wholesalers |
10% |
100 |
150 |
|
|
|
|
|
Unit cost |
|
$7.85 |
$5.47 |
|
|
|
|
|
Suggested selling price |
|
|
|
|
Full retail (direct to consumer) |
15.95 |
15.95 |
|
% discount to retailers |
40% |
9.57 |
9.57 |
|
% discount to wholesalers |
55% |
7.18 |
7.18 |
|
|
|
|
|
Total gross revenues |
|
13,478 |
20,217 |
|
|
|
|
|
Total investment |
|
7,850 |
8,205 |
|
|
|
|
|
Total profit potential |
|
5,628 |
12,012 |
|
|
|
|
|
Return on investment |
|
72% |
146% |
|
|
|
|
|
Breakeven quantity |
|
582 |
609 |
This analysis is for illustrative purposes only. The exact sales mix will depend on your distribution and marketing approach. Actual required discounts and terms may vary among retailers and distributors.
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